Gold Surges 1.7% to Trade Near $4124 on Thursday

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On Thursday, gold (XAU/USD) rose by 1.7%, trading at around $4,124 per troy ounce (31.1 grams).

Platinum (XPT/USD) also gained 1.5% on Thursday, with its price standing at $1,555 per ounce.

The main trading hubs for precious metals are concentrated in the London Over-the-Counter (OTC) market (LBMA), the American futures market (COMEX), and the Shanghai Gold Exchange (SGE).

These three centers account for over 90% of global trading volume:

1. LBMA (London): The OTC market hub where major banks and dealers exchange physical metals, setting benchmark prices (fixing).

2. COMEX (New York): The primary futures and options trading platform for precious metals, setting reference prices in the U.S.

3. SGE (Shanghai): The key Asian hub, growing in influence by offering physical gold trading and impacting Asian supply and demand, particularly in the context of China.

It is worth noting that the gold market exhibits high liquidity:

- Futures trading provides an average daily turnover of around $50-70 billion.

- The OTC segment demonstrates even larger volumes, with approximately $60-80 billion traded daily.

This overview was presented by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the "Higher School of Management" Faculty at the Financial University under the Government of the Russian Federation.